Sun, 19 Sep 2021

The butter market has witnessed significant growth in the past few years, and this growth will continue throughout the forecast period (2019-2029). The global butter market is forecasted to grow at a steady CAGR and the value will roughly equate US$ ~39 Bn by the end of 2029.

In addition to its use for flavoring in various ready-to-eat foods and drinks, butter continues to be an essential ingredients of cakes, cookies, wafers, and biscuits. Processed food manufacturers, bakery chefs, and other snack food manufacturers are experimenting with flavor profiles by infusing the inherent flavor of butter into a variety of products.

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Key Takeaways – Butter Market Study

  • Organic butter is projected to gain more traction during the forecast period 2019-2029 due to the rise in health-conscious consumers. Among all regions, the growth of organic butter is anticipated to be high in Europe and North America due to the large health-conscious demographic. This has led butter manufacturers to launch their products in these regions to gain high revenue.

    • Lactalis S.A. a leading dairy company of Europe is offering salted organic butter and unsalted organic butter. Big companies are acquiring organic products offering firms to add organic butter in their product portfolio.
    • In 2018, Arla Foods amba (a leading company in the global dairy industry) acquired "Yeo Valley", one of the largest organic butter and cheese brands in the U.K.

  • Demand for white or unsalted butter is growing in the food processing industry due to the high demand for buttery flavored snacks and cookies. As salted or table butter cannot be used in the food processing industry due to its high salt content, food processing companies are incorporating unsalted butter in their food products to add buttery flavors, thus boosting sales of unsalted butter.

    • The butter market in East Asia is witnessing steady growth driven by demand from an increasingly urbanized population with higher incomes.
    • In 2018, China was the largest importer of butter in East Asia as well as in the global market. China's import grew by 16% to ~147,500 tons in 2018.

Manufacturers must identify opportunities for profits in European and North American markets, as the demand for organic butter has been observed to be on a higher side in these regions.

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Who is Winning?

Global manufacturers are keen on expanding their presence in the global market whereas regional and small manufacturers are focusing on product diversification and improving their brand awareness. Manufacturers of butter are developing market strategies in response to current trends in the market. Prominent manufacturers are emphasizing on using technological advancements to produce and market their innovative butter offerings such as flavored butter with garlic, curcumin, and other herbs. Strengthening their supply chain and increasing production capacity is another strategy used by leading market players.

  • In February 2019, Graham's Family Dairy entered into a five-year partnership with Aldi (a German brand of discount supermarket chains). This partnership is expected to help the company in sales of consumer products such as butter, cheese, and milk in Scotland.
  • In December 2015, FrieslandCampina invested US$ 32.7 Mn to expand its production in its three operating companies, FrieslandCampina Cheese, FrieslandCampina Butter and Ecomel (organic dairy) in the Netherlands.

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